Creating peace of mind through honest and committed management.

June 17, 2013

FINANCIAL REPORT FOR
THE FISCAL PERIOD ENDING APRIL 2013
(November 1, 2012 – April 30, 2013)
Ichigo Real Estate Investment Corporation (“Ichigo REIT,” Representative: Yoshihiro Takatsuka, Executive Director,
URL: www.ichigo-reit.co.jp/english) is listed on the Tokyo Stock Exchange with the securities code 8975.
Asset Management Company: Ichigo Real Estate Investment Advisors Co., Ltd.
Representative:
Wataru Orii, President & Representative Statutory Executive Officer
Inquiries:
Masanori Kubota, Statutory Executive Officer (Finance, Accounting)Tel. +81-3-3502-4891
Submission Date for Securities Report:
July 25, 2013 (expected)
Start Date for Dividend Payments:
July 22, 2013 (expected)
Supplement Material to Financial and Business Results: Yes
Financial and Business Results Briefing: Yes (for institutional investors and analysts)
1. Financial Results for the Fiscal Period Ending April 2013
(Monetary figures are rounded down to the nearest million yen)

(1) Earnings(million yen; period-on-period change)

Fiscal PeriodEnding April 2013
Fiscal PeriodEnding October 2012

Fiscal PeriodEnding April 2013
Fiscal PeriodEnding October 2012

Operating
Revenue

ChangeOperating
Income4,147(4.0%)

4,320

1.1%

ChangeOrdinary
IncomeChangeNet
IncomeChange

2,036

9.1%

451

(31.9%)

451

―

1,866

21.6%

663

26.0%

(526)

―

Net Income per Unit
(yen)

Ratio of Net Income
to Equity

Ratio of Ordinary
Incometo Total Assets

Ratio of Ordinary
Incometo Operating Revenue

535

0.9%

0.4%

10.9%

(624)

(1.0%)

0.6%

15.4%

(2) Dividends
Dividend per Unit

Fiscal PeriodEnding April 2013
Fiscal PeriodEnding October 2012

(not including
dividends in excessof earnings)

Total
Dividends

Dividend per Unit in
Excess of Earnings

Total Dividends in
Excess of Earnings

PayoutRatio

Ratio of
Dividends to
Net Assets(yen)(million yen)

(yen)(million yen)

(%)

(%)

1,494

1,259

0

0

279.0

2.5

1,387

1,168

0

0

―

2.3

(Note 1)The dividend for the October 2012 period includes a dividend reserve of 1,695 million yen and differsfrom Net Income.

(Note 2)The dividend for the April 2013 period includes a dividend reserve of 808 million yen and differs fromNet Income.

(Note 3)

The Payout Ratio is rounded down to one decimal. Payout Ratio = Total Dividends / Net Income x 100

(3) Assets and Equity

Fiscal PeriodEnding April 2013
Fiscal PeriodEnding October 2012

Total Assets(million yen)

Net Assets(million yen)

Equity Ratio(%)

Net Assets per Unit(yen)

112,830

50,312

44.6

59,695

114,980

51,03044.4

60,547

Cash Flow fromOperating Activities

Cash Flow from
Investment Activities

Cash Flow from
Financing Activities(million yen)(million yen)(million yen)

Cash and Cash
Equivalents at End of the
Period(million yen)

1,693

(341)

(2,389)

8,285

1,847

(2,549)

396

9,323

(4) Cash Flow

Fiscal PeriodEnding April 2013
Fiscal PeriodEnding October 2012

2. Earnings Forecasts for the Fiscal Periods ending October 2013
(million yen; period-on-period change)

Fiscal PeriodEnding October 2013

Operating
Revenue
4,391

ChangeOperating
Income

5.9%

2,095

ChangeOrdinary
IncomeChangeNet
IncomeChange

2.9%

1,309

189.9%

1,309

190.1%(yen)

Dividend per Unit
(not including dividends in excess of earnings)

Fiscal PeriodEnding October 2013

(Note 1)
(Note 2)

Dividend per Unit in Excess of Earnings

1,490

0

The forecasted Net Income per unit for the October 2013 period is 1,390 yen.
The dividend for the October 2013 period is scheduled to include a dividend reserve of 97 million yen
and differ from Net Income.

(Reference)

The Fiscal Period Ending October 2013 runs from May 1, 2013 to October 31, 2013.

3. Other(1) Changes in Accounting Policies, Changes in Accounting Estimates, and Retrospective Restatement(i) Changes Accompanying Amendments to Accounting Standards:(ii) Changes Not Listed in (i):(iii) Changes in Accounting Estimates:(iv) Retrospective Restatement:

No
No
No
No

(2) Number of Investment Units Issued and Outstanding(i) The number of investment units issued and outstanding (including treasury investment units) was
842,823 units at the end of the October 2012 period and at the end of the April 2013 period.
(ii) The number of treasury investment units was 0 units at the end of the October 2012 period and at theend of the April 2013 period.

2Completion Status of Auditing ProceduresThis document is not subject to the auditing requirements set forth in the Financial Instruments and Exchange
Law of Japan. The auditing procedures in accordance with those requirements have not been completed as of thedate of the publication of this document.
Appropriate Use of Performance Forecasts and Other Matters of Special Note
The forecasts presented above are current figures based on certain preconditions. Accordingly, the actual
operating revenue, operating income, ordinary income, net income, dividend per unit and dividend per unit inexcess of earnings may vary due to changes in circumstances. Moreover, these forecasts should not be
construed as a guarantee of such performance or results.
For details on the preconditions, please refer to the “Preconditions for Earnings Forecasts of the Fiscal Periods
ending October 2013” on pages 4-5.
This English notice is a translation of the original Japanese notice and is provided solely for informational
purposes. Should there be any discrepancies between this translation and the Japanese original, the latter shallprevail.

3

Preconditions for Earnings Forecasts of the Fiscal Periods ending October 2013
Item

Preconditions

Periods

The Fiscal Period Ending October 2013: May 1, 2013 – October 31, 2013 (184 days)

Portfolio Assets

 69 properties as of October 31, 2013, which is the sum of 66 properties as of April 30, 2013 and thethree assets acquired on Jun 3, 2013 (“Specified Assets”): Ichigo Akihabara North Building, Ichigo
Sakaisuji Honmachi Building, and Konami Sports Club Izumi Fuchu.
 The number of assets may change due to acquisitions or sales.

Number ofInvestment Units 941,823 units. This is the sum of the number of investment units issued and outstanding at the time ofthis publication (932,823 units) and the newly issued investment units by way of third-party allotment(9,000 units).

Operating Revenue Rent revenue is conservatively calculated based on lease contracts that are in effect as of April 30,
2013, taking into consideration such factors as historical rents, the competitiveness of the properties,
and market conditions.

Operating Expenses

 Ichigo REIT’s principal operating expenses are from rental activity. Excepting depreciation, such
expenses are calculated based on historical data while taking into consideration variable expenses.
 The anticipated amount of property tax and city planning tax is 317 million yen for the October 2013
period. In addition, the prorated property tax and city planning tax relating to the acquisition of theSpecified Assets are included in the acquisition costs and not included in operating expenses.
 Building maintenance and repair expenses are estimated to be 99 million yen for the October 2013
period. However, expenses for each period could differ significantly from these estimated amounts forvarious reasons due to the irregularity of maintenance and repair expenses, costs due to unexpectedbuilding damage, etc., and year-to-year changes in costs.
 Service provider expenses including property management fees, etc. are estimated to be 405 million
yen for the October 2013 period.
 Depreciation has been calculated using the straight line method. For the managed properties,
depreciation is calculated by including the depreciation for future additional capital expenditures in theamortization amount. Depreciation for the October 2013 period is forecasted at 564 million yen.
 Due to unexpected circumstances, the actual operating expenses might differ significantly from theforecasts.

Non-operating
Expenses Interest expenses for the October 2013 period are forecasted at 550 million yen.
 Borrowing-related expenses for the October 2013 period are forecasted at 208 million yen.
 Expenses related to the issuance of new investments units for the October 2013 period are forecasted at
30 million yen.

Borrowings

 As of April 30, 2013, Ichigo REIT’s balance of loans payable stands at 56,458 million yen.
 3,700 million yen of new borrowing occurred on June 3, 2013.

Dividend per Unit Dividends are based on the assumption that distribution will comply with the dividend distribution
policy stipulated in Ichigo REIT’s Articles of Incorporation.
 Dividend for the October 2013 period is assumed to be 1,406 million yen, which is the total amount ofretained earnings of 1,309 million yen plus a dividend reserve of 97 million yen.
 The dividend per unit is subject to change due to factors such as changes in rent revenue associatedwith tenant turnover, the occurrence of unexpected maintenance and repair costs, fluctuations ininterest rates, as well as the issuance of additional investment units.

Dividend in Excess of
Earnings per Unit

 Ichigo REIT does not plan on making any dividend distribution in excess of earnings per unit orretained earnings.

4

Other Performance forecasts are based on the assumption that revisions impacting the forecast figures above
will not be made to laws and ordinances, the tax system, accounting standards, listing rules, rules of
the Investment Trusts Association, Japan, etc.
 Performance forecasts are also based on the assumption that there will be no unexpected materialchange in general economic trends, real estate market conditions, etc.

5Financial Statements(1) Balance Sheet(Thousand yen)
Fiscal PeriodEnding October 2012(as of October 31, 2012)

Fiscal PeriodEnding April 2013(as of April 30, 2013)

AssetsCurrent assets
Cash and deposits

4,391,631

3,413,067

Cash and deposits in trust

4,946,188

4,888,455

Operating accounts receivable

12,73830,525Prepaid expenses

410,744

342,781Consumption taxes receivable

108,851―

Deposit paid

538,843

283,932

5,330

2,126

10,414,328

8,960,888

Other
Total current assets
Noncurrent assets
Property, plant, and equipment
Buildings

8,718,772

8,514,591

Accumulated depreciation(286,933)(385,530)

Buildings, net

8,431,838

8,129,061

41,53535,882

Accumulated depreciation(5,087)(7,001)

Structures, net

36,44728,881

Structures

Machinery and equipment

249,890257,998

Accumulated depreciation(20,019)(30,123)

Structures, net

229,870

227,875

28,66843,150

Accumulated depreciation(4,941)(7,993)

Fixtures, net

23,72735,157

19,925,346

19,555,504

Fixtures

Land
Construction in progress

861―

23,001,545

23,162,755

Accumulated depreciation(1,556,258)(1,897,702)

Buildings in trust, net

21,445,287

21,265,052

Buildings in trust

Structures in trust
Accumulated depreciation
Structures in trust, net

56,84863,222(9,072)(10,762)

47,77552,459Machinery and equipment in trust

172,636

181,705

Accumulated depreciation(33,117)(41,455)

Machinery and equipment in trust, net

139,518

140,249

638,626

644,955

Accumulated depreciation(144,175)(159,464)

Fixtures in trust, net

494,451

485,491

53,390,733

53,390,733

2,721

955

104,168,580

103,311,422

Fixtures in trust

Land in trust
Construction in progress in trust
Total property, plant, and equipment

6

Fiscal PeriodEnding October 2012(as of October 31, 2012)(Thousand yen)
Fiscal PeriodEnding April 2013(as of April 30, 2013)

Investments and other assets
Tenant leasehold and security deposits

15,227

15,227Long-term prepaid expenses

382,582542,690

Total investments and other assets
Total noncurrent assets
Total assets
Liabilities
Current liabilities
Operating accounts payable
Current portion of long-term loans payable
Current portion of long-term loans payable in trust
Accounts payable – others
Accrued expenses
Income taxes payable, etc.
Accrued consumption taxes, etc.
Advances received
Other
Total current liabilities
Noncurrent liabilities
Long-term loans payable
Long-term loans payable in trust
Tenant leasehold and security deposits
Tenant leasehold and security deposits in trust
Asset retirement obligations
Total noncurrent liabilities
Total liabilities
Net assets
Unitholders’ equity
Unitholders’ capital
SurplusCapital surplus
Dividend reserve
Unappropriated retained earnings /loss
Total surplus
Total unitholders’ equity
Total net assets
Total liabilities and net assets

7

397,809557,917

104,566,390

103,869,339

114,980,718

112,830,228

302,841
8,232,500
50,972
242,389
127,637605
27,880624,332
15,9909,625,147

246,8282,460,000―
229,157
83,528605
62,581
597,677
8,558
3,688,935

46,536,500
2,859,827
1,882,897
3,038,728
7,085
54,325,037
63,950,185

53,998,000―
1,775,503
3,047,865
7,118
58,828,487
62,517,423

14,928,800

14,928,800

20,566,420
16,061,353(526,040)
36,101,732
51,030,532
51,030,532
114,980,718

20,566,420
14,366,273
451,31135,384,005
50,312,805
50,312,805
112,830,228

(2) Income Statement(Thousand yen)
Fiscal PeriodEnding October 2012
(from May 1, 2012
to October 31, 2012)

Fiscal PeriodEnding April 2013
(from November 1, 2012
to April 30, 2013)

Operating revenue
Rent revenue – real estate

3,777,902

3,731,734

Other lease business revenue

542,243415,202

Gain on sales of real estate―

180

Dividend income from investment in TK equity

631―

4,320,777

4,147,116

1,790,551

1,671,178

Total operating revenue
Operating expenses
Expenses related to rent business
Loss on sales of real estate

214,468―

Asset management fee

341,854

328,317

Asset custody fee

9,732

10,498Administrative service fees

28,82735,182

Directors’ compensations

9,675

6,300

Other operating expenses

59,311

59,157

Total operating expenses

2,454,421

2,110,635

1,866,355

2,036,481

Operating income
Non-operating income
Interest income

1,520

942

Reversal of distribution payable

1,058

1,099

Insurance Income
Differences in consumption tax
Interest on refund

98

142

25,083

―

―

1,104

Other

2,083

―

Total non-operating income

29,844

3,288

Non-operating expenses
Interest expenses

669,657

585,674

Borrowing related expenses

562,643

1,002,221

Other
Total non-operating expenses
Ordinary income

112―

1,232,413

1,587,896

663,786

451,872

Extraordinary loss
Impairment loss

1,189,489―

Total extraordinary losses

1,189,489―(525,702)

451,872

605

605

Income (losses) before income taxes
Income taxes – current
Total income taxes

605

605

Net income (losses)(526,307)451,267

Retained earnings brought forward
Unappropriated retained earnings/loss

8

267

43

(526,040)

451,311

(3) Statement of Unitholders’ Equity(Thousand yen)
Fiscal PeriodEnding April 2013
(from November 1, 2012
to April 30, 2013)

Fiscal PeriodEnding October 2012
(from May 1, 2012
to October 31, 2012)
Unitholders’ equity
Unitholders’ capital
Balance as restated

14,928,800

14,928,800

Changes during the period
Total changes during the period
Balance at end of the period――

14,928,800

14,928,800

20,566,420

20,566,420

SurplusCapital surplus
Balance as restated
Changes during the period
Total changes during the period
Balance at end of the period――

20,566,420

20,566,420―

16,061,353

Dividend reserve
Balance as restated
Changes during the period
Provision of dividend reserve

16,061,353―

Reversal of dividend reserve―(1,695,079)

Total changes during the period
Balance at end of the period

16,061,353(1,695,079)

16,061,353

14,366,273

17,089,021(526,040)

Unappropriated retained earnings/loss
Balance as restated
Changes during the period
Provision of dividend reserve(16,061,353)―

Reversal of dividend reserve―

1,695,079(1,027,401)(1,168,995)(526,307)451,267

Dividends from surplus
Net income (losses)
Total changes during the period(17,615,062)

977,352(526,040)

451,31137,655,442

36,101,732

Provision of dividend reserve――

Reversal of dividend reserve――(1,027,401)(1,168,995)

Balance at end of the period
Total surplus
Balance as restated
Changes during the period

Dividends from surplus
Net income (losses)
Total changes during the period
Balance at end of the period(526,307)451,267(1,553,709)(717,727)

36,101,732

35,384,005

52,584,242

51,030,532(1,027,401)(1,168,995)

Total unitholders’ equity
Balance as restated
Changes during the period
Dividends from surplus
Net income (losses)
Total changes during the period
Balance at end of the period(526,307)451,267(1,553,709)(717,727)

51,030,532

50,312,805

52,584,242

51,030,532(1,027,401)(1,168,995)

Total net assets
Balance as restated
Changes during the period
Dividends from surplus
Net income (losses)
Total changes during the period
Balance at end of the period

9(526,307)451,267(1,553,709)(717,727)

51,030,532

50,312,805

(4) Cash Flow Statement(Thousand yen)
Fiscal PeriodEnding April 2013
(from November 1, 2012
to April 30, 2013)

Fiscal PeriodEnding October 2012
(from May 1, 2012
to October 31, 2012)
Cash flows from operating activities
Income (losses) before income taxes(525,702)

451,872

Depreciation and amortization

510,874

506,056

Impairment loss

1,189,489―

Interest income(1,520)(942)

Interest expenses

669,657

585,674

Decrease (increase) in operating accounts receivable

2,173(17,786)

Decrease (increase) in consumption taxes receivable(108,851)

108,851

Decrease (increase) in prepaid expenses(13,345)

67,962

Decrease (increase) in long-term advance charges(54,605)(160,107)

Decrease (increase) in deposit paid

99,252

254,911

Increase (decrease) in accrued consumption taxes(74,349)

34,700

Increase (decrease) in operating accounts payable

44,250(91,610)

Increase (decrease) in accounts payable – others(12,104)(13,231)

Increase (decrease) in advances received

29,464(13,849)―

617,220

Decrease by sale of property, plant, and equipment
Decrease by sale of property, plant, and equipment in trust

785,113―

Amortization of security deposit(1,370)(275)

Other, net

19,291(6,745)

Subtotal

2,557,718

2,322,701

Interest income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities

1,520

942

(710,977)(629,783)

(605)

(605)

1,847,656

1,693,255

Cash flows from investment activities
Purchase of property, plant, and equipment
Purchase of property, plant, and equipment in trust(47,084)(39,986)(2,470,471)(191,074)

Increase in tenant leasehold and security deposits

26,37037,582

Decrease in tenant leasehold and security deposits(105,482)(156,826)

Increase in tenant leasehold and security deposits in trust

193,808

260,255

Decrease in tenant leasehold and security deposits in trust(166,284)(251,251)

Sale of investment securities
Net cash provided by (used in) investment activities

20,000―(2,549,143)(341,300)

Cash flows from financing activities
Increase in long-term loans payable

16,658,000

24,479,000

Decrease in long-term loans payable(13,409,384)(22,790,000)

Decrease in long-term loans payable in trust(1,825,486)(2,910,799)

Dividends paid

(1,026,865)(1,167,748)

Net cash provided by (used in) financing activities

396,263(2,389,547)

Net increase (decrease) in cash and cash equivalents(305,223)(1,037,592)

Cash and cash equivalents at beginning of the period

9,628,561

9,323,338

Cash and cash equivalents at end of the period

9,323,338

8,285,745

10